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Steal This Idea

daltonlp writes "Many stories under the "patents" topic on Slashdot are about objectionable patents (Amazon's one-click purchase patent, for instance). These stories typically draw comments full of righteous indignation and jeers about the incompetence of the US patent & trademark office. Don't you wish you could package that sentiment in a handy, bound volume? Maybe with a few more hard facts than you're likely to find on /. ? Well, now you can." Read on for the rest of Dalton's review of Michael Perelman's Steal This Idea. It's not a new book, but it seems more relevant every day. Steal this Idea: Intellectual Property Rights and the Corporate Confiscation of Creativity author Michael Perelman pages 272 publisher Palgrave Macmillan (April 2002) rating Worth Reading reviewer Lloyd Dalton ISBN 0312294085 summary A hard-hitting look at the state of the U.S. patent & trademark system.

Most of the themes and arguments in Steal This Idea will be familiar to anyone who's read a Slashdot thread on patents. Michael Perelman is an economics professor at California State University. In Steal This Idea, he takes the position that patents (and trademarks, to a lesser extent) hurt science and the economy more than they help. He makes a pretty convincing case.

Roughly half the book is devoted to the negative effects of patents on scientific research. Perelman claims that tying research to intellectual property skews the balance of study away from basic research on fundamental problems, and toward short-term research geared toward improving existing products. Several real-world examples are given--many of the most potent come from the world of biological and pharmaceutical research:

Two decades ago, Philip Needleman, then a researcher at Washington University, in St. Louis, and his co-workers postulated the existence of two cyclooxygenase enzymes, COX-1 and COX-2. By 1990, Dr. Needleman, then chief scientific officer at Pharmacia, had guessed that the COX-2 enzyme plays a critical role in inflammation. By 1992, three other groups, including one at Rochester, had confirmed the existence of the enzymes by describing the genes that control their production. Although Rochester won the patent, the competing teams at UCLA and Brigham Young University claim that their work was fundamental.

Whether UCLA, Brigham Young, or Rochester deserved the patent is beside the point. More important is the idea that the granting of a patent on a bodily substance permits the owner to demand royalties from any company that produces a medicine that targets the substance.

Perelman gives historical evidence of IP hampering the development of new technology. His best example is the thicket of radio patents that entangled the baby radio industry, until the U.S. government voided many of them in the interest of accelerating radio technology during WWII.

Finally, Steal this Idea makes the case that scientific progress in the last half of the twentieth century owes a greater debt to basic research from academic and publicly-funded scientists and researchers than to corporate research. The concern is based on the large amount of time (decades, rather than years) needed for basic scientific discoveries to become marketable products is largely ignored by corporate research, which is focused on quarterly results.

It's curious that the internet--maybe the most obvious example of this, is barely mentioned. After all, business research has failed miserably at defining network protocols that match the resilience and utility of the network designed by publicly-funded scientists in the 60s. This may be because Perelman is less interested in obvious examples than lesser known ones, of which there are several in the book.

The second half of the book argues against patents (and Intellectual property in general) in terms of economic theory. Economics is Perelman's area of expertise, but it is not mine. I had to read most of these chapters twice before I understood them. They're interesting stuff, though. Perelman illustrates various ways economists attempt to shoehorn non-tangible goods (information) into economic models based on "lumpy objects." He illustrates the flaws in several of these models, and how these flaws translate into inefficiencies in actual markets.

Good: The book isn't just a rant, although it sometimes reads like one. Perelman is firmly biased against IP, and he sometimes uses a few paragraphs to rail against corporations in general. But the book is logically laid out, and presents evidence in well-defined pieces, always clear about what each example is meant to illustrate.

The examples. Those mentioned above are just a few of the many real-life events noted in Steal this Idea. They comprise the bulk of Perelman's case against patent IP. It's always tough to build an argument on anecdotal evidence, but in this case, there's a great deal of evidence.

The scope. I had doubts that a 211-page book could do justice to the issues with every type of intellectual property. Fortunately, Perelman doesn't attempt to cover copyrights, and barely touches trademarks. The overarching theme of the book is that intellectual property (mainly patents) in the hands of corporations works against the original goals of its creators--to encourage innovation and help the economy. The book does a solid job of supporting this claim.

Bad: IP is supposed to be a "limited" monopoly. Patents are, arguably, the most "limited" of the three types of IP in the US (copyrights, patents and trademarks). Perelman could have acknowledged this, and given concrete examples of why the limits aren't enough to balance the monopoly power. He doesn't explicitly do so.

Copyright is nowhere to be found. That's not all bad, since any book would be hard-pressed to do a better job of handling copyright issues than Jessica Litman's Digital Copyright . Still, Steal this Idea might have included a few more references to copyright-specific cases or works, if only to encourage further reading (patent & trademark examples include many references).

Perelman gives some illustrative figures about why the patent mess is so bad, and why the USPTO is unable to control it. But there's not much meat there. Hopefully, someone will take a more in-depth look at the USPTO itself, and how it operates.

Conclusion: Steal this Idea has a great deal of information, packed into a fairly short book. It's a good companion to Digital Copyright, and well worth reading for anyone interested in how IP works (or doesn't work).

You can purchase Steal This Idea from bn.com. Slashdot welcomes readers' book reviews -- to see your own review here, read the book review guidelines, then visit the submission page.

15 of 222 comments (clear)

  1. Comment removed by account_deleted · · Score: 5, Funny

    Comment removed based on user account deletion

  2. steal the idea by Transient0 · · Score: 5, Funny

    but pay for the book, godammit!

  3. Like anything else ... by nbvb · · Score: 5, Insightful

    Just like anything else..... all IP isn't necessarily bad. There's a heavy anti-IP slant on Slashdot, and that's a shame.

    What's wrong with being able to make a few bucks off of something unique, new and original of yours?

    Just like anything else, *abuse* of the system is the problem. How do we sort the wheat from the chaff?

    I'm not entirely sure. I think part of the problem lies in the USPTO. They probably need to have some subject-matter experts on hand who can check all the patent applications thoroughly.

    Part of the problem is that there are *SO* many applications, that the USPTO can't handle it.

    Any suggestions on how to improve?

    1. Re:Like anything else ... by TheRaven64 · · Score: 5, Funny
      Part of the problem is that there are *SO* many applications, that the USPTO can't handle it.
      Any suggestions on how to improve?

      Well, if the problem is too many original ideas, then the simple solution would be to introduce into the general populous:

      • A diet of pre-processed food low in the proteins essential for brain development.
      • Passive entertainment with a low intellectual content, starving their brains of stimulus.
      Another good idea would be to encourage the nation's youth to use an abbreviated form of the language with a weaker grammatical structure and a lower information-carrying capacity. This will cause their brain cells to organise into patterns less capable of originality and logical thought.

      Oh, wait. We've already tried that, haven't we?

      --
      I am TheRaven on Soylent News
    2. Re:Like anything else ... by timjdot · · Score: 5, Interesting

      USPTO has experts. Most patents are not "new and unique" they are just modifications and mostly that any competent engineer could create without any special insight. Visit the USPTO and take a read. My wife's cousin worked at the USPTO in the 90's and the problem then was the Japanese would read each patent and file 11 patents covering each possible revision to the original patent in order to block improvement!
      Patent is big business. Takes a regular person $6k or so to get one. Takes 3 years AFTER the filing last I checked. Used to be 2 years 4 years ago. At this rate before long, patents will expire before granted.
      Only big business can defend a patent - look at lemon or whatever his name was who is #2 most prolific patenter ever and invented lots of the automated manufacturing but was not paid by the major automakers until he was like 65. Patents do not result in knowledge sharing etc.
      I think everyone knows these things. Too many systems of our government made sense at the beginning of the industrial age but were never deprecated.
      Clearly this is why one-world government is bad. The nation that structures around advancing knowledge rather than lawsuits about it will surpass the U$A. We need more competition in governments rather than more unification.
      Would you vote for a candidate who sought to fix the patent technology roadblock? I would.
      Tim

      --
      Expect Freedom.
    3. Re:Like anything else ... by caesar-auf-nihil · · Score: 5, Insightful

      Well, you're right that certainly there is nothing wrong with an actual inventor protecting his invention and getting paid for it. The original patent system was designed to get inventors to get paid for their work so that they shared it with others via the patent. Back when patents were first granted and created, usually what would happen was that the new invention was kept under wraps and not shared with the greater scientific community, thus slowing down progress. So patents were created as an incentive to share that information.

      Now let's fast forward to today. In major corporations (I work in one), I'm paid to work on scientific research. ALL of my inventions are property not of me, but of the company. My new innovations are patented by the company, and they own it, not me. Okay - so my "benefit" for providing patents to the company is my pay which compensates me for my innovation and advancement to science. No problem there. The problem is how those patents are then used. Since my ideas are the property of the company, I have no control over them once they're owned by the company. So what you see today are patents being used not to protect a new innovation, but to prevent others from using that new innovation. This is the key point. Patents are granted to companies who have no intention of making the innovation a reality to benefit mankind, but rather, something to use in competition with other companies to prevent the other company from gaining an edge over them.

      See the difference between how patents used to be and how they're used now? You are also right that the USPTO is part of the problem, granting patents for things that should not be granted. My personal favorite is one where a company claimed a small amount of an inorganic chemical provided a benefit in a plastic, and the inorganic chemical could be made of anything in the periodic table of the elements. Utter bullshit. The point of the whole matter is that the patent system is broken in how it is used, and how patents are created - but the abuse of how patents are used is THE major problem here.

      --
      -When going for broke, go for Ithaca!
  4. the thicket of radio patents ... by burgburgburg · · Score: 4, Funny
    the thicket of radio patents that entangled the baby radio industry, until the U.S. government voided many of them in the interest of accelerating radio technology during WWII

    Wow! Now if only the U.S. government would do the same thing with computer patents, things would be grea ...Oh, wait. I forgot that the U.S. government is now formally a subdivision of Microsoft/AOL/TW/Fox/MPAA/RIAA. Oh well. Nice while it lasted.

  5. The case against patents by brentlaminack · · Score: 5, Informative

    An older reference to patents in general can be found at Don Lancaster's site Tinaja.com. There's a pdf of the original paper, and some e-book links. Don's been an active author in the technology world for several decades. His site has some other amusing opinion pieces as well. Enjoy!

  6. Stolen things... by BrynM · · Score: 4, Interesting
    The name, of course, brought to mind the classic Abbie Hoffman book "Steal This Book". Since I hadn't read the copy I stole from my Dad years ago (which he stole from an early Tower store) in a very long time, I popped "Steal This Book" into Google and was pleased to find several links to the ENTIRE BOOK!

    I think it's ironic that the Hoffman book is found online in it's entirety after being brought to mind by a book about copyright protection and IP law. The universe has a strange sense of humor/justice...

    --
    US Democracy:The best person for the job (among These pre-selected choices...)
  7. Clarification on the enzyme issue. by gpinzone · · Score: 4, Insightful

    Although Rochester won the patent, the competing teams at UCLA and Brigham Young University claim that their work was fundamental.

    I don't believe the patent was on the COX-2 enzyme itself, only it's application for medicines to reduce inflamation. If someone found a different use for the enzyme, I don't think the patent would cover it.

    Who cares if it was fundemental. They researched it, found it, and claimed "FIRST POST!^H^H^H^H^HPATENT!" It's their right to get a patent for their work. Yes, it would be great if other drug companies could compete and make said drug for cheaper. However, you get into the "chicken and egg" problem of drug companies not doing research because it's not profitable. Besides, the author states that "scientific progress in the last half of the twentieth century owes a greater debt to basic research from academic and publicly-funded scientists and researchers than to corporate research." So why didn't they find it first? Prior art would have killed the patent. The truth is that corporate research provides an important contribution. If it didn't, this wouldn't be an issue.

  8. Not the usual anti-patent rant by GGardner · · Score: 4, Interesting
    We've all seen and mocked stupid patents, like the patent on swinging sideways on a playground swing. However, I don't think pointing out random bad patents is a useful way to critique the current US patent system. We all know there are a huge number of patents, and with any huge collection, there are outliers.

    However, when searching for the mythical Novell Unix patent a the patent office I was really struck by how bad every software patent was.

    For example, when searching for patents assigned to Novell (search criteria AN/Novell), the very first patent returned is number 6,567,873, which is a patent having to do with spinlocks in an SMP kernel. Basically, the patent covers the idea of exponential backoff for a contented resource. This is something which ethernet has done for 30 years, and I'm sure there's even further prior art.

    Another Novell patent involves resizing FAT file partitions on the fly, and involves no real insight at all.

    But it's not these two patents. Almost every single patent is either just this obvious, or just this derivative of prior work. Check it out yourself -- pretty much every computer program ever written must violate hundreds of patents.

    1. Re:Not the usual anti-patent rant by codefool · · Score: 4, Interesting
      There was a time in the early 90's when every corporation went pantent crazy. I worked at the time for [a company that is now HP], and we had to go to Patent School where we were 'taught' how to fill out log books, get them reviewwed and signed, etc. all in the effort to protect the Company's IP. Now, we all kept notebooks like all good scientists, but this was more of a process to make sure that the evidence was there as to exactly when and what was 'invented'.

      This behavior was justified by the need to have a sufficient patent portfolio when bartering with other technology companies. Rather than battle out an infringement claim in court, companies would just trade patent rights, like high-tech marbles in the schoolyard.

      So I and my team went to work and developed some pretty nifty stuff . I got four software patents out of the deal. Not because I particularly felt the work was patent worthy, but because I got a grand for each one, and a pretty cool plaque in a Handsome Plastic Frame.

      Every one of those patents are bogus. I borrowed all the technology - regular expressions, IP-IP protocols, and just plain-ol-object embedding. When I would tell this to the patent lawyers, they said the patent was viable because of the context it was presented in. That is, if the base idea for the patent itself is obvious, it can be argued that its application is not. Ergo, cha-ching!

      --
      "Stop whining!" - Arnold, as Mr. Kimble
    2. Re:Not the usual anti-patent rant by Arandir · · Score: 4, Insightful

      I'm the unfortunate filer of a patent. I did it because I wanted to keep my job secure. I didn't want to at first. The idea was kind of innovative, but no especially so. But then a competing company changed my mind.

      My field has only three huge multinational corporations. As I was debating whether or not it would be worth it in the long run to toss my patent application in the shredder, we got hit by a patent by Philips, one of those big three. We had prior art on this patent. We had been doing it for ten years. We had never patented it because it was so bloody obvious, with art prior to ours dating back to the Apple Lisa. I was thinking Philips was going to get a swift kick in the butt by our attorneys. But no, we decided to cross license for it. It turned out that it was cheaper to let them use one of our worthless patents in exchange for their worthless patent instead of spending two hours of court time listening to a judge laugh his head off at the absurdity of the patent.

      I came to the realization that patents in the modern world are nothing more than a set trading cards used by corporations. Some of those cards, like a Mickey Mantle, might have some genuine value to them, but most are worthless obviousness.

      Patents have become valueless commodities. It doesn't matter about any indivual patent, so long as you have more patents than your competitor.

      --
      A Government Is a Body of People, Usually Notably Ungoverned
  9. Patent scope by Anonymous Coward · · Score: 5, Insightful
    Patents are, arguably, the most "limited" of the three types of IP

    Have to disagree there. At least I can't violate copyright without actually copying someone else's work. Patents can deny me the right to my own, independently developed ideas. They don't last as long, but they're much more powerful.

  10. Happen to own a copy of the book... by thdexter · · Score: 4, Interesting

    and I'm also an Economics major. The economics is really mostly dead-on, except that the author seems to imply that research is of more worth than profit. Which is of course true, but not in a free-market system--or anything related to it. If anybody's interested on how you and I get screwed over, though, go read some Noam Chomsky. All the government thinktanks develop cancer drugs, malaria drugs, whatever, and once they're perfected, they're sold for pennies to corporations who then sell them for $102/pill. Really, the only way to salvage this is to either have the government manufacture drugs (but socialism is just one step from COMMUNISM BOO HISS) or impose rules on drug makers (which again is regulation--companies hate this.) The people need to realize that health care is a right, not a privilege. And that's why I scoff when Bush declares himself a compassionate conservative and then cuts welfare programs, or cuts his oil buddies' tax rates. Disclaimer: I'm a member of the Green Party, and I think that we should have a maximum income... better to screw those that live well than those that are too busy being hungry to sit around with bags of money and diamond back scratchers.

    --
    I'm on a road shaped like a figure eight; I'm going nowhere but I'm guaranteed to be late.